Construction Starts Improved 13% in May

Total US construction starts rebounded significantly in May, increasing 13% to a seasonally adjusted annual rate of $1.16 trillion, according to Dodge Construction Network. This robust monthly performance followed a sluggish April, with nonbuilding activity surging 20% due to strong utility and environmental public works projects. Nonresidential building starts also improved 18%, underpinned by gains in commercial and institutional sectors, though manufacturing starts declined 13%. Residential starts saw a modest 2% rise, primarily driven by multifamily developments, despite a 5% drop in single-family starts. However, senior decision-makers must note that year-to-date figures paint a more subdued picture; overall starts through May remain 4% below last year's pace. Nonresidential and residential segments are down 6% and 5% respectively year-to-date. Sarah Martin of Dodge Construction Network cautioned that "ongoing uncertainty around trade policy and the economic outlook is likely to keep construction activity in check." This divergent data suggests continued market volatility, demanding strategic foresight amidst prevailing economic headwinds. Read More